tv [untitled] December 29, 2011 8:31pm-9:01pm EST
baby brokers. that's right they're shrinking they're downsizing because. we're telling more macs london brokers shrink as debt crisis bites london stock brokers are shrinking as europe's sovereign debt crisis and competition from international firms squeezes revenues and fees here's the jamie diamond. and here's a little lloyd blankfein over at goldman sachs look like they can play ben bernanke . so quick to do the little jimmy don't. forget. he's going to do this. yes brokerages in london are apparently shutting up shop laying off brokers and heading out of town now tim. who is stepping down as chief executive officer at panmure gordon and company one hundred thirty five year old brokerage said this isn't just
a blip this is much worse it's a desert for activity which is why you are seeing some firms throw in the towel is partly due to the collapse in the i.p.o. market but also the fact that it appears that these smaller brokerages just can't compete with the large firms in terms of the high frequency trading you know that most like the likes of goldman sachs and j.p. morgan can trade at a speed faster than the speed of light so these firms can afford the multimillion dollar colocated computers to front run clients around the world that's right they can use i frequency trading to go back in time and still money from people from last year you know they're crying here that these brokerages are shrinking. but it's better than their actual clients who are evaporating max guest post legality of m.f. global asset transfer questioned commodity customer coalition founder james could two last is requesting that m.f. global bankruptcy judge martin go and investigate three potential legal issues that
are said to have occurred in transferring of m.f. global assets the key issues include the fact that j.p. morgan was able to purchase m.f. global bonds at a discount without any open bidding process and the assets were apparently sold without disclosure to or approval from the u.s. bankruptcy court or trustees the third issue centers on j.p. morgan seeking special favors from the federal reserve to receive priority treatment over investor segregated fund accounts jamie's dirty. give a spanking. max this is important it's more than just that mean it is as absurd as that but it is a fact that earlier this year we saw this little clip i'm going to turn to here where jamie diamond stood up and spoke to ben bernanke you braided ben bernanke saying oh you know we've done this list the list five things that the industry has
done to make the financial system more sound look at ben bernanke use face as he is like in ecstasy looking at jamie diamond speaking to me that list you gave me made me pretty good there for a while because the son like we're getting a lot done that's a great. world. ben bernanke is like looking at this little baby there you know the mothers all was looking during all the at their children even if there might be look like i got hit with a bag and nickels you know jamie diamond got that ugly mug because he's a no good c'mon drink and ben bernanke is looking at him like oh isn't it double my little baby jamie diamond. here is a guy who is able to go to ben bernanke change the rules and regulations to put himself in front of tens of thousands of m.f. global clients in congressional testimony on december fifteenth two thousand and eleven it was discovered j.p. morgan asked the federal reserve to write a letter claiming that the segregated funds should not be categorized as client
money this is what james could too less is responding to and he says in response to this j.p. morgan wanted a get out of jail free card from the fed guess what that doesn't fly with me their hubris is so severe they think we don't know the industry like we are occupy wall street radicals or something and don't have a clue. well i mean it's amusing to watch these bankers lined up you know the front of congress every once in a while giving testimony you know risk is the new tobacco basically you know risk will kill people as surely as smoking cigarettes well and these major risk pedlers who the extra anality of their corrupt business model is to spew risk into the environment just like zero out of energy companies spewing oil and the exxon valdez kill a few million fish area got j.p. morgan and these other bankers spilling risk that they have no accountability for
they don't have to pay for it people are choking on a dime on it they do they have any accountability want some ever know that goes from the congress we're going to have to get rewards because the club talkers think what james could to us here is however betraying the fact that these people think they're closer but they're smarter than the occupy wall street people the people that are down in the dot bottom ninety nine percent the people who are not professional traders but have been defrauded who's for a one k.'s are down by seventy percent in some cases he thinks that he's somehow above them that he's not going to be a victim of jamie dimon so here he is divide and conquer that he's not on their side because he actually has called. going for the hash tag boycott j p m that's the stock symbol for j.p. morgan hash tag boycott j.p. m. and this is the campaign he's launched but he separate he's different from occupy wall street when in fact they're the same they're the victims of the same exact criminals and the same exact criminal enterprise run by those same exact criminals
if you want to make a ton of money in two thousand and twelve in your professional hedge fund manager you know collude with your other hedge fund managers and sell short j.p. morgan stock because their balance sheet means a stock price equity is worth zero i mean it's as simple as that soon that you're in the like john paulson he's lost fifty percent of his clients' money this past year because he's an idiot he made of billions of dollars last year by you know leveraging the sub prime nightmare to his benefit this year he lost fifty percent of his money he should get together with some of hedge fund buddies so short j.p. morgan stock shelves short make it you know john paulson is one guy he already made his billions from his connection to goldman sachs were saying right here right now here this guy is a trader he might only have a million bucks he might only have ten million bucks but so did john paulson before the subprime collapse he made his billions because of his close connection to goldman sachs here were saying this is blatantly obvious this is
a criminal racket here you james could to this why you're boycotting j.p. morgan why don't you short their silver position why do you make some money why don't you take it to the next level instead of issuing these idle threats that's a good question i mean whether it's this guy could to a list or occupy wall street they like to talk to the flap there or go home but they refuse to engage in the actual strategy that would destroy this financial terrorist buying so over their shorts over they stole it out of m.f. global accounts to cover their silver for one item number two they're getting the federal reserve to cover their silver shorts of the change laws on the fly to cover the silver shorts hello you buy so very put them out of business do you want to take terrorism off the market do you want to take terrorism out of the front line of your law. do you want to repeat yourself some terrorism you want to say so your head up your sniffing and looking for silver to cover j.p. morgan silver shorts do you do you do or are you a baby or are you a little baby suckling a good deal of well more free money i want through food stamps but a little blue because i get the most. oh well now we're going to turn to another
call for a boycott now this woman is and barnard she's shut down her commodities trading for if she was an independent commodities broker and she was interviewed by peter schiff she shut down her firm because of the m.f. global fraud but here's a clip where she's calling for the boycott of the entire financial system in particular because the bankruptcy judge and the fed apparently allowed for this bankruptcy to proceed as if m.f. global were securities firm rather than a futurist firm peter schiff asked her well what's the difference i have to explain this there or what that means is is that in a securities firm bankruptcy the debtors or the creditors of the company go to the front of the line and the customers go to the end of the line in a commodity brokerage bankruptcy that kind of humor needless to say go to the front of the line and global it has less than four hundred security council and i believe
they had more than forty thousand users account so this was willful that up to you screw the customers and specifically j.p. morgan at the front of the line you know once again you've got the bank j.p. morgan gets congress to change laws on the fly to suit their needs as a predatory terrorist oh a. bad thing i would think so hey let's call the white house. and we're going to all of the white house this guy is out golfing but going forward max it doesn't matter who the president is it could be wrong. paul it could be sarah pail and it could be hellary clinton who ever is in that position whoever replaces ben bernanke whoever replaces timothy geitner there is always going to be between you and your wealth jamie diamond and the likes of him here is again that
little clip of ben bernanke you responding to jamie diamond jamie that list you gave me to pretty good there for a while because yeah well it's a club you know and they're stealing everybody's money that's true and no politicians going to stay view and here i'm going to turn to mark's father here some clips from him of what he thinks about this whole derivatives market going forward he sees a big collapse let's turn to this clip here and i don't know when it will happen but i'm convinced that one day the whole theory that the fs market will cease to exist will become zero. and wait happens i don't know but you know you can postpone the problems was one of three measures for a loan for you car and so for them so max he went on to say that greece should have defaulted to send a message that not all derivatives are created equal because it depends on the counter party how can you have
a counter party on seven hundred trillion in the revenue there are no counter parties and thus there's going to discover through the industry faster than light particle parallel galaxy people who like to buy derivatives from the fall straight i don't think they're going to have make good on it either this is command and control communism that you see being operated by the central banks of which j.p. morgan is a member of that so he's saying that they want all derivatives to be equal wealth must be redistributed equally to each unit of a credit derivative even though they are not all equal right so it's like making those farm equipment or cars during a you know previous communist era country and price fixing and saying that's wealth the fact that the ancillary markets break down and there's no way to service those cars and they're completely and economically created and it's creating massive poverty in the system is overlooked similarly what the derivatives i think they're
all the same they're coming off the assembly line of fraud on wall street and they're causing incredible poverty but the ideology and the dog law and the central planners in washington and the propaganda say that there's something else happening meanwhile the other countries have already been through that nightmare are have grown up and they're ready to lead the world the brics brazil russia india china they're ready to take it forward you know live these idiots but but you also hear max in america over and over especially through fox news that somehow it's the workers that must be the workers because i know rand and frederick hyatt told us the stuff that it must be though socialist that we have to find the socialist. when it's sitting there right in front of their face the command and control of interest rate policy but also this policy towards creating credit derivatives that they're all being treated equal oh absolutely i mean workers are essential to create the capital upon which you have a free market capitalist system if you turn all of your workers into merely consumers that are borrowing money and that money is borrowed artificially low
thanks a lot max oh it's my pleasure to be back all right now we all know about the bad bets on european debt but what role did gold and silver play in the collapse of m.f. global actually what i thought was pretty interesting in the open issues physicians for each yours the second phase actually happened after i'm a global declared bankruptcy because what you happened then is i think you have people distrust the marquis as a way to say is it will deliberate because you know as we both know there are people that stood for delivery for books gold and silver but ended up you know as far as i know right now still i resolved i would see their money back so you saw a second period. last two weeks of november again for open interest in the longs for gold it's a richer struck respect of twelve thirteen percent again so you really really have a market market drop off in the open interest of futures and of course oversmart
because of m.f. global collapse ok so this is i was banned they biggest bone of contention that the big silver vigilantes and gold vigilantes have around the world whether it's eric sprott in canada or others you've got the paper market the callbacks and the l.m.a. and they have broken free of reality and they simply create price discovery based on outright fraud which is now evident in the m.f. global situation so what sort of changes to goal and so over derivative contracts happened at the time of m.f. global's collapse this far as you can sing actually took a look at the aggregate. part reports become him a traitor reports of the c.m.e. releases and if you don't see huge differences it shifted open interest in the gold and silver futures but when you look at that this aggregator reports it becomes a different story so the desegregate reports actually breaks down the sectors by producers. manage money if you look at the managed money category which typically
entails commodity trading advisors or register people operators such as i'm a global then you see something really interesting max because you see probably about the end of august to mid october you basically see the match money longs the gold it's over a crash so there's a thirty four percent drop in go up yours and the long positions at forty five percent in the silver longs just from end of august to mid october and then the bulk of that was actually in a two week period between september thirteenth it's a temper twenty summit so i think you know what you saw was. i don't know exactly how much that was because i'm a global i don't think it's a coincidence because you know i'm a global basically i was downgraded october twenty fifth and declare bankruptcy on october thirty first so i think some of those accounts this futures accounts were you know beginning to be frozen in the months you know up to way and the global declared bankruptcy and that's when you see the huge drop in open interest and the
long positions and the goal is to be just market right now a new congressional testimony thursday december fifteenth twenty love it was discovered that j.p. morgan asked the federal reserve to write a letter clammy claiming that these segregated funds in m.f. global should not be categorized as client money your thoughts. magos a that's absolutely ridiculous because what our security council clients can't have the money protected in segregated accounts i mean it's kind of the same analogy would be unallocated accounts versus allocated accounts in physical gold it's over that you know boy banks hold for customers so always that never never a whole eighty billion and anality on allocated accounts of any kind it probably not even anybody backs but if you can't have allocated counts in this case you can't have segregated accounts protected then you know what rights do you know clients have they have not right now also when the m.f.
global went bankrupt that j.p. morgan lobbied the regulators to do so under a sub chapter four of chapter seven bankruptcy which would mean that the firm was considered a securities firm instead of a futures farm which made j.p. morgan a senior creditor in so i guess it's technically not illegal but it's still a hanging offense in some courts now the trustees at for m.f. global have floated the idea of liquidating clients gold and silver holdings your thoughts also says i think they already have right now because you know they certainly liquidated physicians out for delivery there were definitely people that held large amounts a gold and silver futures contracts long positions that are busy delivery and they're not getting their physical gold and not getting their physical so are those accounts have been offset or liquidate it and they're not sure if they're going to get one hundred percent of their cash back so it's almost as i think it's basically
you know looks like straight straight that because there been you know i've read some instances where people are trying to match up the increase in the register it's over of j.p. morgan's accounts and it seems to kind of almost match the amount of physical silver. physical art i'm sorry the amount of silver pitchers a gulp is just context sober is a good delivery so i don't think that's a coincidence that those numbers almost match up so if somebody is trying to buy a million dollars of silver on the comics or gold how do they do it save or buy it out you know how do people buy volume in precious metals now because of the call max is going to simple or the london l.m.a. is simply going to do the bidding of the banks there's how do people buy boyan and size down bulk physical sure i think there is one silver lining in this cloud in this you know tolly criminal and the global case and that is the fact that's going to basically change the mechanism by which
a lot large buyer seek to purchase large amounts of physical gold physical silver and we've already seen that happening i think it was mark could if i mean as a c.e.o. anglo gold ashanti even sickly separ the past eighteen months there's been a lot to tell you this in the physical gold supply and also the physical silver supplier are very very large fire so what's happening especially in light of what happens m.f. global large buyers now are circumventing the totally corrupt criminal paper markets and they go directly to the producer so they're going directly to the gold miners in the silver miners and they're asking to buy millions of dollars of work. directly from the miners so i think actually that's a good thing that will come out of this is that they'll circumvent the project it like middleman here in this case the comix or the alamy and go directly to the producers to buy large amounts of boy and yes some are speculating that we will see two prices quoted will see the paper price and the physical price coming up in the next year because you'll have the actual price discovery going on physical bullion
between buyers and and miners and then you have the corrupt paper price that's nifty led by j.p. morgan and wall street to feather their their corrupt balance sheet fraud deceit to price is emerging twenty twelve i think you we've already seen that mexico's a bit by. and given the latest dip they get there and you know this month they went so or was it trading intra day one time of twenty seven dollars and ninety nine cents announce i went and looked at them only x. and other dealers and i thought still sell one ounce over a coin it's only for like thirty one dollars and seventy four cents so that's a thirteen percent premium they go over the futures price and over the spot price so i think we're already beginning to see this and you know my feeling about these paper derivative markets is i think that bankers deliberately set that up to suppress gold or silver prices to manipulate prices late in their favor so they could steal from clients i don't think it was ever intended like as i said is the is the mission of these paper derivative products to allow producers the hedge i
think they've wanted to set up like a fake market a fake paper market where whereby you know basically today's ridiculous because a futures a stock price for gold and silver are have nothing to do almost with the physical supply and demand determinants of gold and so over all right let's take a look into the crystal ball for twenty twelve j ask him what is your outlook for precious metals twenty twelve any thoughts on that well as far as a time horizon it's always very difficult right next to predict i don't like you know giving predictions like gold is going to be a few dollars or is going to be it's of a year eighty within a certain time frame but i will say that i believe that gold is so b. will still rising multiples of where they are right now both goli and so over it all depends probably on how long this frog continues in the paper market so if the comix you know deep thoughts of course we see gold and so we're double triple
overnight so it just depends upon how long they can keep kicking the can down the road and keeping you know the fraudulent mechanisms for controlling the price of gold and silver short term going in these bogus paper markets right well technically it comics is default and already there have been the billion. venturi that they're they're just floating a lot of faulty accounting and they're trying to keep it together with you know scotch tape and rubber bands i mean they come axes they ran out of inventory you know the air ago so they're just sure you know they're just pretending as if they have inventory in the markets pretending as if they have inventory but at some point they're going to disclose that they've defaulted i suppose that would be a big boost to the prices at that at that point because people realize that they've been lied to about comics inventory sure sure but i also think even you know what the c.e.o. of google ashanti said that people are now circumventing comix circumventing
bellamy go directly to the gold miners the silver meyer's the buy a boy and i think that will be a game changer because that will mean that the boy banks will happen more difficult time getting the tiny fraction of physical gold physical silver that they used to back the futures markets and that used to leverage gold up one hundred so once over one hundred sixty five to one it's time so that you know sure and also at the top on the futures markets so i think you thousand and twelve will be a very interesting year we'll see extreme volatility in gold and silver prices but at the end of the year i think we're going to see much much higher gold and silver prices ok finally asia the appetite for precious metals in asia is still very strong correct you see that continuing next year definitely definitely see the advocate for precious metals are growing especially since you know age where we don't have a lot of propaganda and brainwashing through the academic system that we have in the western world as far as gold being
a barbarous relic. and you know not not just store of value so you know that is largely absent from a lot of the agent educational system so asia's really valuable a value so over so they will continue to see strong strong buying. pressure and. both go and so are workers physical workers all right james came around a time thanks for being on the kaiser report ok thanks a lot max and i was going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i want to thank my guest j.s. kim of smart knowledge you dot com you can follow j.s. on twitter at smart knowledge you can follow us on twitter or facebook you can just look up kaiser report because i mean e-mail account is reporting r t t v dot are you. guys are saying bio.
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a little bit of. oh i'm sorry but i washington d.c. and here is what's coming up tonight on the big picture that i we decided to rigzin in the past year on the big picture and share with you some of our most fascinating segments so for the rest of the show we'll cover some of the biggest stories of the last year as well as the stories that created the most buzz among our viewers a message board members will begin tonight with the occupy wall street movement this is been an extraordinary year for the.